AMERICAS OIL: US OIL: December 5 - Americas End of Day Oil Summary: Crude Higher

US OIL: December 5 - Americas End of Day Oil Summary: Crude Higher 

WTI Crude has risen slightly higher and is now on track for a small net gain on the week amid stalled Ukraine peace talks, further potential EU/G7 actions against Russia, and geopolitical risks in Venezuela, outweighing concerns for a market surplus heading into 2026. US consumer sentiment was higher in the December reading.

• The US total oil and gas rig count was up 5 rigs on the week at 549 rigs, according to Baker Hughes. This puts total US oil and gas rigs down 40, or 6.8% on the year. Oil: 413 (6) - down 69 rigs, or 14.3% on the year. Canada: 191 (+3) - down 3 rigs, or 1.5% on the year.
• The G7 and European Union are in talks to scrap the oil price cap on Russia and instead impose a full ban on Russia accessing maritime services in order to disrupt its oil exports, sources told Reuters. Russia exports over a third of its oil in Western tankers.
• Ukraine and Russia talks appeared stalled, with Putin emphasizing that several points in the US backed peace plan were unacceptable. Talks between Umerov and Witkoff will take place in Miami today.
• OPEC’s oil output edged lower in November despite higher quotas due to outages in some member countries, according to a Reuters and Bloomberg surveys.
• Russia plans to raise oil exports from its western ports by 27% in December from November amid excess crude storage buildup and large rollover volumes after bad weather and drone attacks, Reuters reports.
• Russian crude imports are slightly higher after sanctions went into effect on Nov. 21, with combined imports into China, India and Turkey edging 50k b/d above Aug.-Oct. averages, according to JPMorgan.
• Crude stockpiling in China, continuing around 900kb/d, will help absorb a global surplus next year, Citigroup said cited by Bloomberg.
• Suncor reported flaring at its Sarnia refinery in Ontario due to a process interruption according to a community alert.
• Diesel cracks have risen as the market assesses overnight Ukrainian strikes on Russian energy infrastructure, as well as potentially longer maintenance at Kuwait’s Al-Zour refinery, though remain well below highs seen in November. Gasoline cracks ended slightly lower as the gain in RBOB futures lagged crude’s.
  • WTI Jan futures were up 0.7% at $60.08
  • WTI Feb futures were up 0.8% at $59.78
  • RBOB Jan futures were up 0.4% at $1.83
  • ULSD Jan futures were up 2.6% at $2.36
  • US gasoline crack down 0.1$/bbl at 16.95$/bbl
  • US ULSD crack up 1.7$/bbl at 39.24/bbl